Bill would let Providence pursue water-supply partnership

Madeleine List Journal Staff Writer madeleine_list

Wednesday

Feb 13, 2019 at 10:32 PMFeb 13, 2019 at 10:32 PM

Legislation introduced in the General Assembly this week would enable the city to partner with water authorities, operators, or regional water quality management district commissions while limiting rate increases and maintaining public oversight of the utility.

PROVIDENCE — Providence lawmakers this week will introduce legislation that would allow the Providence Water Supply Board to partner with outside water authorities, according to an announcement sent by the mayor’s office Wednesday night.

The bill would enable the city to partner with water authorities, operators, or regional water quality management district commissions while limiting rate increases and maintaining public oversight of the utility.

“For more than 100 years, Rhode Islanders have relied on Providence to be the stewards of most of the state’s water supply,” Mayor Jorge Elorza said in a statement. “ ...We can no longer kick the can down the road. This legislation is critically important to maintain a vibrant and optimistic future for our state, preserve the quality and affordability of the water source and to address our long term finances.”

Elorza has proposed the monetization of the water system as a way to fund the city’s unfunded pension liability, which is estimated to be about $1 billion. His proposal has been met with criticism and skepticism from some politicians and members of the public.

Providence’s water, which comes from the Scituate Reservoir, serves 60 percent of the state’s residents.

“What we’re proposing with this legislation is in the best interest of the entire state,” said Rep. Scott Slater, D-Providence, in a statement. “It’s unsustainable for Providence to continue to operate, and pay for, the water system that serves the majority of Rhode Islanders. This is an opportunity to make sure that decision-making for our water supply remains at the local level for years to come and puts Providence on a sustainable financial path.”

The bill would cap rate increases for the first five years following any transaction involving the water supply board. Any subsequent rate increases would be capped at percentages already approved for five years prior to the transaction. Rates were increased by 8 percent in 2017.

After entering into a partnership, the entity would remain a fully-regulated public utility with regulation to protect water quality and ensure sustainability of the resource, according to the statement from the mayor’s office.

The city has been in discussions about an arrangement with the Narragansett Bay Commission and issued a Request for Qualifications in November to seek entities interested in entering into a lease with the city to manage and operate the water supply.

Any revenue gleaned from a deal would go toward the city’s pension fund, according to the mayor’s office.

The mayor will host three community information sessions in March to allow the public to learn more about the legislation.